BROOKINGS Developing the Brookings Marketplace land isnt going to be cheap, but a tax increment financing district and economic development grant OKd by the City Council at Tuesday nights meeting will help.
The aid, sought by Minneapolis-based developer Ryan Companies, was approved 6-0, with Councilor Andrew Rasmussen absent. Developer representative Patrick Daly expects construction to commence on the project, which is envisioned to be a regional shopping center, this spring and stretch into 2026.
The roughly 18-acre site, just east and north of Sixth Street’s interchange with Interstate 29, is expected to be home to an Aldi grocery store along with a 127,000-square-foot anchor retailer and up to two smaller stores. Daly said non-disclosure agreements remain in force, but he hopes names can be revealed soon.
For now, the land has to be improved to make it fit for use and that, per the new TIF, is projected to include more than $9 million in eligible costs for such things as streets, water, sanitary sewers, storm sewers, grading, landscaping and more. The TIF will likely generate roughly $5.5 million in incremental funding, so thats where the citys $2,250,000 economic assistance grant comes into play to help Ryan Companies.
The developer will front the project costs entirely, with reimbursement only coming for authorized expenses.
Leading up to the vote, Brookings Economic Development Corp. CEO Tim Reed made his case.
Retail options have really always gone hand-in-hand with quality of life, he said. You want quality of life to attract people to this community.
He said consumer surveys conducted by the BEDC one in 2019 with a little over 2,000 respondents and one currently underway in 2024 with 753 respondents always ask, What improvements would you like to see Brookings make? In both surveys, the No. 1 response was more shopping and retail options, Reed said.
Another question thats asked involves finding out why people choose to spend their money outside of Brookings. Variety was the answer in both.
Theyre looking for more variety obviously, the Brookings Marketplace would help with that, Reed noted.
Another question on the surveys over the years focuses on if only one new retailer could come to town, which one would respondents want? In 2013 it was, from No. 1 choice to No. 3 choice, Target, Kohls and Shopko. In 2019 it was Target, Aldi and Kohls. In 2024 its been Target, Aldi and Kohls.
So you see, a big-box retailer is what the community is looking for, Reed said. All of that adds to our attraction that will attract labor force and such if we have those retail options.
He highlighted the city and county tax revenue potential short-term and long-term from the endeavor.
Over a two-year period, he said, the impact of construction will add up to a total of roughly $80.9 million, so in the ballpark of $40 million per year. That includes the 311 construction-related jobs per year, with a city tax impact of an estimated $957,483 mostly in the form of sales tax revenue, but some property taxes as well. The county, Reed added, would benefit to the tune of $147,488 in tax revenue.
Once construction ends, the positive economic effects would continue, Reed said, noting that its expected the Brookings Marketplace will support 148 jobs. The economic output from those jobs is estimated at $15.7 million, for a city tax revenue of an estimated $200,833 each year. Direct sales tax revenue is estimated to run from $1.1 million to $1.5 million each year.
You can see that your investment in this would have a quick payback, Reed pointed out.
He also noted that theres a lot of land to the north of the Brookings Marketplace that could be used for future expansion, such as retail or housing. He added that the current infrastructure investment will help open it up for development in the years ahead.
The Brookings Marketplace development project represents an investment in the Brookings community with the potential for significant economic, social and quality of life enhancements, Reed concluded. It is positioned to retain substantial consumer spending in Brookings while meeting community demand for expanded retail. Enhanced shopping will not only benefit residents, but will also attract visitors, potentially increasing hotel stays, and stimulating further commercial development.
Other business
Budget approval: Tuesday night included the final OK for the citys 2025 budget. Given the green light on a 6-0 vote, it clocks in at $73,169,780 which is an increase of $2.8 million from the current budget. Related measures that were also OKd on 6-0 votes were the consolidated fee schedule and the 10-year capital improvement plan.
Council, mayor pay: Starting with the new term in May, city councilors will earn $750 per month for their services while the mayor will earn $1,000 each month. The pay boosts, approved on a 6-0 vote, are the first ones since 2012 and bring the city closer in its compensation to other peer communities. The current monthly compensation is $600 for councilors and $800 for the mayor.
Liquor licenses: Approved, on a pair of 6-0 votes, renewing the alcoholic beverage licenses for Edgebrook Golf Course and Buffalo Wild Wings. Both had failed a compliance check within the past year, but testimony from establishment reps satisfied councilors that there wouldnt be future compliance failures.
Contact Mondell Keck at [email protected].
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